Par value stock is capital stock to which the charter has assigned a value per share. Years ago, par value determined the legal capital per share that a company must retain in the business for the protection of corporate creditors; that amount was not available for withdrawal by stockholders. Thus, in the past, most states required the corporation to sell its shares at a par or above.
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A worksheet is a multiple-column form that companies use in the adjustment process and in preparing financial statements. As its name suggests, the worksheet is a working tool.
- Income taxes
Under the U.S. pay-as-you-go system of federal income taxes, employers are required to withhold income taxes from employees each pay period.
- Cash budget
The cash budget is a projection of anticipated cash flows. Because cash is so vital, this budget is often considered to be most important financial budget.
A business organized as a separate legal entity under state corporation law and having ownership divided into transferable shares of stock is a corporation.
- Internal control
Internal control consists of all the related methods and measures adopted within an organization to: Safeguard its assets from employee theft, robbery, and unauthorized use.
- Activity-based costing (ABC)
Activity-based costing (ABC) is a method of allocating overhead based on each product’s use of activities in making the product.
- Under- or Overapplied overhead
Underapplied overhead means that the overhead assigned to work in process is less than the overhead incurred. Overapplied overhead means that the overhead assigned...